James Brehm Senior Strategist Compass Intelligence

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If M2M were a football game, what quarter are we in?

Training Camp!

U.S. Next-Generation M2M and Connected Device Vertical Market Share, 2011 U.S. Next-Generation M2M and Connected Device Application Market Share, 2011

Why deploy M2M? Market or Revenue Growth Cost Reduction

What is the Smart Grid Anyway?

Smart Grid DoE’s Smart Grid Shortlist Self-healing from power disturbance events Enabling active participation by consumers in demand response Operating resiliently against physical and cyber attack Providing power quality for 21st century needs Accommodating all generation and storage options Enabling new products, services, and markets Optimizing assets and operating efficiently The Smart Grid is loosely defined as combining software, sensors, computing power, and traditional telecommunications elements to the existing power infrastructure to automate the creation, distribution, transmission, and use of electricity.

Why Focus on Electricity? Electricity is one of the largest and most capital-intensive sectors of the economy. – America’s electric assets exceed $800B with 60% invested in power plants, 30% invested in distribution and 10% in transmission facilities. – There are 3,100 electric utilities and more than 2,000 independent power companies and customer-owned distributed-energy facilities. Annual electric expenditures total over $250B annually (and increasing).

Why Focus on Electricity(continued) Benefits outweigh risks of not doing anything. – Rising fuel prices and uncertain access to fossil fuels. – Electricity demand projected to increase by 30% to (USDOE) – Global warming and the harm to the atmosphere. – Poor utilization of economic capital. – Updating of 100+ year old technology. – Momentum of Sustainability and Corporate Social Responsibility. The Electric Power Research Institute estimates that while the Smart Grid will cost $165B between now and 2025, the ROI (savings) will be 4 to 1 or nearly $800B.

Challenges New business models are still being developed Standards for collection of data need to be formalized Training around new devices, services, processes and procedures is required Consolidation must occur – realignment of existing infrastructure and assets Regulatory environment in question Best practices around security of information and compliance with regulation are still being developed

What’s Next? Smart grid demonstrations and deployment. R&D to advance smart grid functionality by developing innovative technologies and tools in the areas of transmission, distribution, energy storage, power electronics, cybersecurity, etc. Interconnection, Interoperability and Standards activities. Monitoring national progress activities and creating measurable metrics Stakeholder engagement and outreach activities - sharing lessons learned.

Things to Think About

James Brehm Senior Strategist 112 E. Pecan Suite 1100 San Antonio, TX